What Are the Rights of Beneficiaries?

When a person dies, they may leave a will or trust that outlines which assets will be left to which person. The recipient is called a beneficiary.

A beneficiary is a person or entity legally designated to receive assets from a trust, will, retirement account, or life insurance policy. While beneficiaries are entitled to receive what has been left to them, their rights depend on the type of asset involved and whether it passes through probate.

Understanding beneficiary rights helps prevent confusion, delays, and conflict during estate administration. Knowing what information beneficiaries are and are not entitled to can make the process smoother and protect everyone involved. Here is a look at common rights a beneficiary may have.

Access to Information

Beneficiaries generally have the right to be informed of their status. In the context of a trust, trustees are usually required to notify beneficiaries and provide basic information about the trust’s existence, terms, and administration. This often includes access to relevant trust documents and reasonable updates about how assets are being managed.

For wills, beneficiary rights typically begin after the testator’s death and once the probate process starts. Beneficiaries may be entitled to a copy of the will and updates from the executor regarding estate administration.

Right to an Accounting

In many cases, beneficiaries can request an accounting of assets. This means a detailed explanation of what assets exist, how they are being managed, and when distributions are expected. Trustees and executors have a fiduciary duty to act in good faith and manage assets responsibly, and accountings help ensure transparency and accountability.

Timing of Distributions

Beneficiaries do not always receive assets immediately. Trusts may delay distributions based on age requirements, milestones, or other conditions set by the creator of the trust. Estates going through probate can also take months or longer to settle, depending on complexity, debts, and disputes. Beneficiaries generally have the right to receive assets within a reasonable timeframe, but patience is often required.

Challenging Improper Actions

If a trustee or executor mismanages assets, withholds information, or violates their fiduciary duties, beneficiaries may have the right to take legal action. This can include petitioning a court to demand an accounting, compel distribution, or remove and replace the fiduciary.

Limits on Rights

Beneficiary rights are not unlimited. They cannot override valid instructions in a will or trust, demand early distributions when conditions have not been met, or interfere with proper estate administration. Creditors, taxes, and administrative expenses are typically paid before beneficiaries receive their share.

Executors have rights as well. They have the rights to receive reasonable compensation for their work and consult with professionals with questions about administering the estate. They can also decline the role of executor if they wish.

Seek Legal Help

Beneficiaries do have certain rights, and executors need to be aware of them. They cannot simply act as they please, so setting clear expectations at the outset can help everyone understand their roles.

Fort Lauderdale probate litigation lawyer Edward J. Jennings, P.A. can help you understand executor duties and the art of making sure beneficiaries are properly updated. Schedule a consultation today by calling 954-764-4330 or filling out the online form.

Source:

trustandwill.com/learn/beneficiary-rights